Numbers don't lie. As the above graphs show, inventory of available homes for sale is building in Iron County and prices are correcting.
While many would-be sellers are "holding out", the reality is that the tidal wave of home sales crested earlier this year and that tide is now heading out!
It's interesting that prices are correcting as fast as they rose. On average, property values have dropped between 8 and 12% this year. Based on current economic factors, it's a safe bet that values will continue to correct by a further 10% over the next six months, or by the Spring of 2023.
So what are the main factors affecting this change?
Essentially we are moving back to a "normal" market. We're no longer seeing the panic buying wave, caused by covid, that led to very low inventory here.
But what is a "normal" market?
The reality is that nothing today can really be called "normal".
Nationally, annual closings jumped by almost 20% in 2021, compared with 2019. So those people who were planning to buy in the next couple of years went ahead and bought. This is likely to contribute to a lag in overall sales throughout the country for the next few years!
We should also remember that we are in a deep economic crisis in the US with no sign of relief. Until things stabilize again, the big unknown factor is how long it might take to fully return to a truly "normalized" market.
So what can you do about it today?
Price and condition are the main driving factors in getting a home sold in today's market. As our graphs show, the market is on a downward trend, so a realistic attitude to what your home is actually worth at the moment is essential. Presentation of the property is also now far more critical, as buyers have the luxury of choice once again.
Nonetheless, we are continuing to sell homes in good numbers. Our clients recognize that the relentless efforts we make to sell any property, even in the boom times, are an absolutely essential ingredient for success right now.
Yes, things are now tougher than they were just a few months ago, but we have your back and will be there with you every step of the way to make sure that nothing is overlooked and every opportunity is immediately seized upon.
Why not contact us on 435-327-2090 to discuss your own situation in more detail. We'd love to help.